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ISSUE 33 DECEMBER 14 - JANUARY 13, 2014 PRICE €4.95

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the international investment, finance & professional services magazine of cyprus

+ RAKIS CHRISTOFOROU, CONSTANTINE NICOLAIDES, NICOLAS THEOCHARIDES ECONOMY

Nine months on Cyprus still surprises

INTERVIEWS

Michael Leontiou Andreas Christou Alexei Ryabov

SHIPPING

European Policy Outlook 2014

Plus:

MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION




Issue 33 December 14- January 13, 2014

6 EDITORIAL 8 up front 14 FIVE MINUTES WITH…

+ opinion

Limassol may be the secondlargest city in Cyprus but in many ways it is well ahead of the rest of the island. We present our selection of the leading Limassol-based companies – local and international – that are currently helping the city to weather the latest economic and financial storm.

62

Nine Months On By Fiona Mullen

42

Cyprus & Transparency By Andreas Neocleous 76

15 58 | Silence In Court! Constantine Nicolaides regrets that not all lawyers and judges in Cyprus possess the key virtues of patience and respect.

60 | CIBA Celebrates its 20th Anniversary ‘Business As Usual’ is the theme of the AGM

62 | Extending Its Global Reach

58 FEATURE 38 | “There’s No Magic Solution”

Named one of 2013’s fastest growing private companies with 100% growth in revenue over the last three years, American Internet technology firm Global Reach has expanded to Cyprus.

38

65 | IPCC carbon budget to 2100 will be used by 2034 New PwC analysis sounds warning

Those who have retained their wealth need to entrust its management to the experts, says Nicolas Theocharides.

44 | A Policy Outlook for European Shipping By Patrick Verhoeven, Secretary General of the European Community Shipowners’ Associations (ECSA).

78

70 72 76 78

{money} {business} {economy} {lifestyle}

47 | SPECIAL ADVERTISING SUPPLEMENT

66 | Natural Capital

Strategy Kazakhstan 2050: A new political course for Kazakhstan in a fast-changing world

Cyprus possesses valuable assets that even the Troika cannot subject to a haircut

4 Gold the international investment, finance & professional services magazine of cyprus



EDITORIAL

Ring Out The Old, Ring In The New

W

e all know that in order to progress in our personal and professional lives, we cannot stay in the same place for too long. Change is necessary but it can often be difficult to accept and even more difficult to implement. For the past nine months, Cyprus has been facing up to the need for change in many areas and it has not been easy. The biggest casualty of the country’s bailout has been the banking sector – overnight, the second biggest bank in Cyprus ceased to exist and depositors in Bank of Cyprus lost 47.5% of their money. We have been told by the international lenders that the island has to change its business model and, over the next three years, the status of the three main semi-government corporations (Cyta, the EAC and the Cyprus Ports Authority) will change as privatisation plans are implemented. There are few people in this country who have not been subject to significant salary reductions and the most unfortunate are those who have seen their jobs disappear altogether. No-one doubts that things have to change but knowing this does not make the situation easier to deal with. There have, fortunately, been a few positive outcomes that offer some encouragement: two Troika reviews full of praise for the Government’s handling of the terms set out in the Memorandum of Understanding, and the island’s first ratings upgrade in three years (for long-term sovereign debt to B- from CCC+) by Standard & Poor’s. Cyprus’ European partners now appear keen to assist in the rebuilding of the economy and there are even encouraging voices regarding a long-overdue settlement to the Cyprus issue. There should be no illusions, however, about what awaits us in 2014. It is going to be a difficult 12 months but Cyprus will survive as it has done in the past. As Limassol Mayor Andreas Christou notes in an interview in this issue (page 16), the place in which he grew up was not always the big, bustling city that it is today. But it has changed, progressed, developed and it continues to do so. And while it may still be the second-largest city in terms of population, Limassol has been quite a success story on more than one occasion. For our cover story we have selected more than 120 outstanding companies in a range of sectors that are based in Limassol. Coming back to the theme of change, I do not wish to give the impression that we at Gold are only good at giving advice to others. The changes that have been taking place in the global media sector over the past decade could not have been ignored by a publication like ours and I am delighted to inform you of our latest step forward. By the time you read this, the Gold News portal should be up and running (www.goldnews.com.cy) and you will be able to subscribe online to our Gold News Daily Newsletter. This exciting new venture does not mean an end to Gold magazine which will continue to provide and promote a broad range of views and analysis from those in the investment, finance and professional services sector. Gold News and the Daily Newsletter will merely enable us to provide more up-to-date news and to promote Cyprus to a much broader readership. The news portal will not replace Gold but it will complement it in a way that, I believe, will please you as readers. As always, you will let us know if we are right. This time last year, I wrote “…as far as the economy is concerned, there can be little optimism for 2013 for the proverbial man in the street” and I described 2012 as “a somewhat disappointing year”. I have already noted that 2014 is not going to be a bed of roses. What I can say, however, is that Gold – in its monthly printed and digital format and in its new online version – will continue to bring you the news of the sectors on which we focus in the same responsible, serious and balanced way that we have been doing for the past 33 months. I thank you all for your support and all of us at Gold wish you a Very Happy New Year.

John Vickers, Chief Editor john@imhbusiness.com ISSUE 30 SEPTEMBER 14 - OCTOBER 13, 2013 PRICE €4.95 POwEREd By:

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Effy Pafitis CONTRIBUTORS TO THIS ISSUE

Fiona Mullen, Andreas Neocleous, Chloe Panayides, Patrick Verhoeven, Dr. Artemis Yiordamli ART DIRECTION

Anna Theodosiou SENIOR DESIGNER

Alexia Petrou PHOTOGRAPHY

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6 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

editorialGOLDnew.indd 6

06/12/2013 15:17


IWC PORTUGUESE . ENGINEERED FOR NAVIGATORS

Portuguese Chronograph Classic. Ref. 3904: The fact that Portugal’s greatest seafarers are remembered to this day is due not least to this watch: the appliquéd Arabic numerals and the railway track chapter ring elegantly reference its legendary forerunner from the 1930s. But today’s sea-going pioneers are equally well equipped with the Chronograph Classic. The IWC-manufactured automatic 89361-calibre movement and its 68-hour power reserve keep it firmly on course even under windless conditions. Whether you’re aboard a historic three-master or a modern motor yacht,

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Mechanical chronograph movement, Self-winding, 68-hour power reserve when fully wound, Date display, Stopwatch function, Hour and minute counters combined in a totalizer at 12 o’clock, Flyback function, See-through sapphire-glass back, Water-resistant 3 bar, Diameter 42 mm, 18 ct red gold


up front

PwC US gains ‘Vanguard’ status

P

wC US has been recognized as a Vanguard firm in Kennedy Consulting Research & Advisory’s Forensics & Dispute Advisory report. The report assesses and evaluates service providers in the Forensics & Dispute market in two areas: forensic investigations and dispute advisory & analysis. PwC was one of a few firms that achieved “Vanguard” status in both areas. According to the report, PwC’s clients identify the firm as a global leader and best-in-class in dispute

advisory & analysis. Additionally, PwC has “taken steps to maintain [its] edge in the [dispute advisory & analysis] space” and has achieved “Vanguard status by virtue of a rare combination of outstanding depth in specific investigatory areas despite moderate breadth.” “We understand the significant risks organisations face every day. Whether the forensic challenges are local or cross-border, our experienced team around the world provides organisations with seasoned support and solutions,” said Christos Tsolakis, Forensics Partner at PwC. “This Vanguard achievement is a testament to our ability to help clients with their most complex and urgent situations.”

Double Win

for Drambuie

D

rambuie recently celebrated a double award win at the Spirit Business Liqueur Masters 2013. Drambuie 15 was awarded the top accolade of Master while Drambuie received Gold. Tim Dewey, Global Marketing Director at Drambuie, said: “We are thrilled to be recognised for not one, but two of our products by one of the industry’s most respected awards, with the wins highlighting Drambuie’s ongoing objective to provide a superior liquid to consumers.” The highly prestigious Spirit Masters series, now in its sixth year, is fast becoming one of the most respected and high profile trade competitions in the industry, rewarding the finest brands on excellence. Drawing entries from around the world, each spirit is judged on its own merit by a panel of independent judges. For the past 15 years, LaikoCosmos Trading Ltd has been the exclusive distributor of Drambuie in Cyprus. Drambuie is a blend of the finest aged Scotch whisky, spices, and heather honey. The recipe was created more than 260 years ago exclusively for Prince Charles Edward Stuart of Scotland.

I

New Accountants

I

CAEW President Martyn Jones and ICPAC Vice President Nicos Chimarides congratulated 150 successful new Associate Chartered Accountants and seven global prizewinners at a graduation and prizegiving ceremony at the Hilton Park Hotel in Nicosia last month. The ceremony celebrated all the successful candidates who have qualified as ICAEW Chartered Accountants in 2012-2013, gaining the prestigious and internationallyrecognised ACA qualification. The last year has seen spectacular success from students in Cyprus, who won four of the top five prizes in the Professional Stage Exams in December 2012. This year also has also seen the 20th anniversary of ACA training being offered in Cyprus, highlighting the long relationship that the international accountancy body has with Cyprus.

CORRECTION There were a number of errors in last month’s cover story

which we wish to correct. Regarding Antonis Paschalides & Co LLC. Alexia Melanie Paschalidou is an expert both in Banking Litigation as well as in Litigation & Arbitration. Charalambos Carlos Paschalides is an expert in Corporate & M&A and Tax & International Tax Planning. Antonis Paschalides is an expert in Banking & Finance, General Business Law and he specialises also in Energy Law. The firm is a candidate for the award Energy Law Firm of the Year in Cyprus (Corporate INTL Magazine 2014 Global Awards). Regarding Kinanis LLC, Despo Andreou and Soula Kyprianou no longer work for the firm. Additionally, we wish to note that Chris Yiangou works for George Y. Yiangou LLC and that Stavros Pavlou is the Senior & Managing Partner of Patrikios Pavlou & Associates LLC. Apologies to all those concerned for any inconvenience that incorrect or outdated information may have caused.

8 Gold the international investment, finance & professional services magazine of cyprus

Record

Art Auction

Prices

nvestment in Art continues to thrive, with the value of works seemingly unaffected by the turmoil experienced by other commodities. Rival auction houses Christies and Sotheby’s both produced staggering sums at their November auctions of Post-war and Contemporary art, shattering previous record prices for both individual works and total sales in art auctions. Christie’s two-day auction series achieved a grand total of $782,368,375 setting a new record high for any auction series. Francis Bacon’s Triptych Three Studies of Lucian Freud sold for $142.4 million, becoming the most valuable work of art ever sold at auction while Jeff Koons’ Balloon Dog went under the hammer for $58.4 million, becoming the most valuable work sold at auction by a living artist. The Sotheby’s Contemporary Art auction enjoyed similar success, with works such as Andy Warhol’s Silver Car Crash (Double Disaster) selling for $71.7 million and Liz #1 (Early Colored Liz) for $20.32 million, among others.



The Marshall Islands The Islands Corporate Registry The Marshall Marshall Islands Registry The Marshall Islands TheCorporate Marshall Islands Corporate Registry Corporate Corporate Registry Registry

50th Anniversary

©Corbis ©Corbis ©Corbis ©Corbis ©Corbis

P

atrikios Pavlou & Associates LLC held a cocktail party at the Four Seasons Hotel, Limassol in October to celebrate the firm’s 50th anniversary in Cyprus and on the international legal scene. Partners, lawyers and staff enjoyed an emotional gathering with friends, clients and associates from Cyprus

Project team:

Maritime & with Corporate Administrators tel: +30 210 4294 404 | piraeus@register-iri.com in affiliation the Islands Maritime &|with Corporate Administrators in affiliation the Marshall Marshall Islands tel: +30 210 4294 404 piraeus@register-iri.com Maritime & Corporate Administrators www.register-iri.com tel: +30 210Maritime 4294 404&|Corporate piraeus@register-iri.com Administrators www.register-iri.com tel: tel: +30 +30 210 210 4294 4294 404 404 | | piraeus@register-iri.com piraeus@register-iri.com www.register-iri.com www.register-iri.com www.register-iri.com

the key figures honoured, Patrikios Pavlou, Founder & Senior Internal Consultant, was singled for the wisdom and guidance he has given the firm since 1963. Patrikios Pavlou & Associates LLC announced that an amount equivalent to the cost of the event would be donated to several charitable organisations supporting the sick and needy throughout Cyprus.

Cyprus Tourist Guide

on Your Mobile

T

The leading jurisdiction for The leading jurisdiction for The leading jurisdiction for • Asset Management, The leading jurisdiction The leading jurisdiction for for • Asset Management, • •Asset Management, Vessel Ownership •• Asset Asset Management, VesselManagement, Ownership • •Vessel Ownership Real/Intellectual •• Vessel Ownership Vessel Ownership Real/Intellectual Property Holdings • Real/Intellectual Property Holdings •• Property Real/Intellectual Holdings •Real/Intellectual Initial Public Offerings/ Holdings Property Holdings • Property Initial Public Offerings/ Publicly Traded Companies • Initial Public Offerings/ Publicly Traded Companies •• Initial Public Offerings/ Initial Public Offerings/ Publicly Traded Companies Publicly Traded Publicly Traded Companies Companies

IRI Hellas Ltd. IRI Hellas in affiliation with Ltd. the Marshall Islands IRI Hellas Ltd. IRI Hellas in affiliation theLtd. Marshall Islands Maritime &with Corporate Administrators IRI Hellas Ltd. in affiliation with the Marshall Islands

and abroad. In an address to the invited guests, Stavros Pavlou, Senior & Managing Partner, looked back over the firm’s long history, before referring to today’s challenges and recalling the firm’s core ethics which have not changed over the past half-century: providing value, respect, commitment and professionalism to clients and associates. Among

(L-R) Patrikios Pavlou, Persa Pavlou, Stravros Pavlou, Stella Louca Pavlou, Chrysostomos Nicolaou, Yianna Nicolaou, Lia Iordanou Theodoulou.

The project is funded by the Research Promotion Foundation under the National Framework Programme for Research, Technological Development and Innovation 2009-2010 with co-financing from the Republic of Cyprus and the European Regional Development Fund of the EU.

he University of Cyprus, in collaboration with IMH and Geomatic Technologies, has produced a new mobile application that guides tourists in Cyprus to local attractions and places of interest. Allowing users to access an extensive array of information, directions, reviews and suggestions to enhance their time on the island, the Cyprus Tourist Guide app will provide visitors with a glimpse of the island’s many archaeological, religious, leisure and entertainment hotspots. Accessed from users’ mobile devices, now the most common and convenient information platform, the app eliminates the need for paper printing and binding like most traditional tourist guides. The Cyprus Tourist Guide selects users’ current locations manually, enabling those without a built-in area sensor full access to its benefits. Compatible with Android, Microsoft and iOS mobile software, this new app can be accessed by all smartphones.

Its exclusive features allow users to: View lists of nearby attractions with directions automatically loaded from their current location. Read detailed descriptions of attractions, as well as relevant information such as opening hours, contact details and entrance fees. Filter attractions according to their preferences and view only relevant places of interest. View ratings and suggestions as posted by other users, as well as create, contribute and save visited attractions. Create tour plans by adding attractions to lists, allowing them to organize their holidays beforehand and make the most of their time in Cyprus. User profiles, including personal information such as gender, age, nationality, preferences and visited locations, are saved anonymously on the application, offering complete privacy. The Cyprus Tourist Guide is available for download via Google Play and start your tour of Cyprus today!


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